April 29, 200817 yr Too bad the PD did so much negative press, especially since NC was able to gain a profit from last year....first time this has been mentioned in a PD story... Unfortunitely, the early damage may have been done with the negative news, which does effect people to pull their money out/not put money, making the situation even worse. I know news was needed...but half the sh!t they put out was merely speculation, only adding to the bombardment. I've even been contemplating opening up an account to show for my Cleveland support...although it would be moral support! --------------------------------------------------------------------------------------------------- Shareholders crowd into National City to hear turnaround plan Posted by Teresa Dixon Murray April 29, 2008 09:36AM More than 100 shareholders crowded into an auditorium at National City Corp. this morning for the troubled bank's annual meeting. An overflow crowd streamed into National City's Cleveland headquarters to hear executives explain their plan for turning the company around. After announcing a $7 billion infusion from private investors last week, the bank can now focus on restoring investor confidence. More at cleveland.com http://blog.cleveland.com/business/2008/04/national_city_corp_investors_w.html
May 28, 200817 yr Awards for National City?? -------------------------------------------------------------- Cleveland Rocks! Posted by John Soat, May 27, 2008 04:37 PM How did the CIO of a rust-belt financial firm buffeted by the mortgage meltdown mess pull out a big win in Cambridge, Mass., last week? Here's a hint: Make the most of what you've got. The winner of the MIT CIO Innovation Award at last week's MIT Sloan CIO Symposium was the CIO of National City Corp., Joseph McCartin. McCartin has been CIO of the Midwestern bank, which has been forced in the last several months to borrow large sums against possible write-downs related to the mortgage market tumble, for about five years. A multiyear, multidiscipline program centered on cost containment involving homegrown Cobol-based applications combined with cutting-edge integration and interoperability technology was what led to his award. The program, known as "Core Renewal," involved the updating of legacy systems with a sophisticated service-oriented architecture to create an innovative platform for crafting customized consumer and small-business offerings and a sophisticated customer loyalty program. A key technology component, according to McCartin: WebMethods, from Software AG. A lot of people around him advocated a "rip-and-replace" strategy, McCartin said last week during an interview at the luncheon honoring his award and others, but he knew that would be disruptive and cost prohibitive. Instead, McCartin is looking forward to employing predictive analytics based on the data gleaned from the bank's new customer-oriented business model. http://www.informationweek.com/blog/main/archives/2008/05/cleveland_rocks.html
May 29, 200817 yr ^NCB stock jumped 50% with this news. I've also heard that the retro cobol-based applications are really popular with Japanese teens.
May 29, 200817 yr Maybe it's because I was a CompE at Case, but I read that "Cobol-based applications" line as an Onion joke. Please don't tell me they were being serious.
May 29, 200817 yr I think they're talking about integrating their current cobol apps with current technology, as opposed to the cobol apps themselves being innovative.
May 29, 200817 yr I'm sure the Cobol code is very maintainable. I'd love to have to integrate with it. But, yes, I see now that that is what the article is referring to. I should have read more closely.
May 30, 200817 yr I'm sure the Cobol code is very maintainable. I'd love to have to integrate with it. Given your CompE background at case, that almost sounds sexual.
June 7, 200817 yr CLEVELAND (AP) - National City Corp., a bank troubled by bad loans, is reportedly facing tighter regulatory oversight. The Wall Street Journal reported Friday that National City's banking unit recently entered into a "memorandum of understanding" with the Office of the Comptroller of the Currency, effectively putting the bank on probation. National City shares fell 40 cents, or 7.5 percent, to $4.95 Friday after sinking to a 52-week low of $4.75 earlier in the session. Shares have plunged more than 85 percent from $34.71 last summer. National City, the nation's 10th largest bank, was heavily exposed to mortgage and housing woes, but it has cut jobs and moved away from broker-originated subprime lending. On Jan. 2, National City disclosed it was shutting down its wholesale mortgage division, eliminating 900 jobs, due to weakened housing and credit markets. The bank, which operates largely in the Midwest, also has slashed its dividend to 1 cent per share from 21 cents to help strengthen its capital position. Cleveland-based National City operates about 1,400 bank branches spread mostly across Ohio, Florida, Illinois, Indiana, Kentucky, Michigan, Missouri and Pennsylvania.
July 14, 200816 yr This is interesting! National City trading halted http://news.cincinnati.com/apps/pbcs.dll/article?AID=/20080714/BIZ01/307140069
July 14, 200816 yr Calm Down. Nothing happened. Be more worried for WaMu! National City: We’re no IndyMac National City (NCC), the struggling Cleveland-based bank whose shares are trading at an 18-year low, says it isn’t the next IndyMac (IMB). The bank, in a statement issued Monday, said it is ”experiencing no unusual depositor or creditor activity,” has $12 billion in excess short-term liquidity, and has no capital problems due to a recent $7 billion capital raise. The comments come after shares in the bank plunged 24% Monday, just days after regulators took over the failed IndyMac Bank amid worries that the Pasadena, Calif., bank wouldn’t be able to meet depositors’ demands to withdraw their funds. National City shares, which have lost more than half their value since the bank announced plans in April to raise new money, were down $1.12 at $3.30 http://dailybriefing.blogs.fortune.cnn.com/2008/07/14/national-city-says-its-no-indymac/?source=yahoo_quote
July 14, 200816 yr No, I am not, because the FDIC insures my deposits up to $100k. Welcome to Banking 101.
July 14, 200816 yr You are only a fool if you keep your money in and it fails. How? if you have less than 100,000 per account, it's insured. If you have more than that, than you become a creditor in the bank. Once the bank is in receivership, then the FDIC has to liquidate the banks assets before you get your money.
July 14, 200816 yr Im not saying this bank is in trouble. But if i was in control of a 15 million dollar account for a local community. I would take it to a healthier bank. It only makes business sense. Doing nothing could lead to dire consequences if the bank does go down. Again im not saying it will.
July 14, 200816 yr Im not saying this bank is in trouble. But if i was in control of a 15 million dollar account for a local community. I would take it to a healthier bank. It only makes business sense. Doing nothing could lead to dire consequences if the bank does go down. Again im not saying it will. You weren't clear about that in your previous messages. I think we're all talking about personal accounts.
July 14, 200816 yr Do you really think cities keep unprotected bank accounts just at the local National City branch?
July 14, 200816 yr Do you really think cities keep unprotected bank accounts just at the local National City branch? Unless they chopped it up into 150 different accounts. They do have to have that money somewhere to pay huge 150k bills like interest payments and such.
July 14, 200816 yr Do you really think cities keep unprotected bank accounts just at the local National City branch? Unless they chopped it up into 150 different accounts. They do have to have that money somewhere to pay huge 150k bills like interest payments and such. Um most company's don't keep that much money in a bank. They wire it in, then pay the bill, then keep a small balance. what I've said is really simple, however, the controller should be balancing and juggling accounts appropriately.
July 14, 200816 yr Maybe but it's been all over the news that the economy is bad and that Indymac is HISTORY. So if someone reads that their bank has stopped trading for the day. That would make a person think if they want to take their money out or not. And if i was a seller i would be truly pissed i couldn't sale the stock today. That's just me. Everyone has opinions. For everyone sake im hope im wrong and not right.
July 14, 200816 yr No, I am not, because the FDIC insures my deposits up to $100k. Welcome to Banking 101. Yes, it's insurred. But that does not mean you can have it right away. Past failures have sometimes made people wait months, even years, to get all their insurred money back. The length of time is different on a case-by-case basis. In many cases you have to essentually file an insurance claim with the FDIC and wait for it to be processed. In other cases, you can withdraw your money immediately. At least that's my understanding, having never been through the process myself.
July 14, 200816 yr No, I am not, because the FDIC insures my deposits up to $100k. Welcome to Banking 101. Yes, it's insurred. But that does not mean you can have it right away. Past failures have sometimes made people wait months, even years, to get all their insurred money back. The length of time is different on a case-by-case basis. In many cases you have to essentually file an insurance claim with the FDIC and wait for it to be processed. In other cases, you can withdraw your money immediately. At least that's my understanding, having never been through the process myself. Why don't we just read this: http://www.fdic.gov/deposit/Deposits/insured/faq.html
July 14, 200816 yr We have no money. We just spent 150 billion on stimulus checks. Spending 2 trillion on Iraq. Already bailed out banks before, bailed out airlines before, bailed out Amtrak. We are selling our companies to foreign entities, selling out ports to foreign entities, selling our toll road to foreign entities. We are basically just screwed.
July 14, 200816 yr I for one don't like the direction that this thread is taking (and the babbling from unusualfire).
July 14, 200816 yr WaMu, National City Lead Steepest Bank Stock Decline Since 1989 By David Mildenberg, Bloomberg, July 14, 2008 Washington Mutual Inc., the biggest U.S. savings and loan, and National City Corp., Ohio's largest bank, led the steepest decline in bank stocks in almost two decades after IndyMac Bancorp Inc.'s collapse spurred concern more lenders are vulnerable to bad home loans. WaMu slid $1.30, or 30 percent, to $3.45 at 12:59 p.m., and National City dropped $1.11, or 25 percent, to $3.31 in New York Stock Exchange composite trading. First Horizon National Corp., Tennessee's largest bank, declined 22 percent, while Regions Financial Corp., Alabama's biggest, fell 14 percent. ``IndyMac's failure has people worried about others,'' said Mark Fitzgibbon, a principal at Sandler O'Neill & Partners LP. ``The mindset is throw the baby out with the bathwater.'' The Standard & Poor's 500 Banks Index had its worst one-day decline since September 1989. WaMu, as Washington Mutual is known, and National City said today that they haven't noticed any unusual depositor activity. WaMu plans to report second- quarter earnings on July 22, while National City's report is scheduled for July 24. Banks and mortgage companies are the worst performers in the S&P 500 this year, and Merrill Lynch & Co. strategists led by Richard Bernstein said today the stocks will continue to lag. Laszlo Birinyi, president of Birinyi Associates Inc., also told investors to avoid the group. ``Take a very low profile,'' Birinyi, who oversees more than $350 million in Westport, Connecticut, said in an interview on Bloomberg Television. ``There's an awful lot of fires that need to be put out. I'm concerned about how we get them all out.'' IndyMac Investors are speculating about which banks may fail after the demise of Pasadena, California-based IndyMac, which once ranked as the second-biggest U.S. mortgage company. National City said in June it signed an accord with federal regulators tied to capital, risk and liquidity management. The bank says it's well-capitalized after raising $7 billion in May from investors led by Corsair Capital Management LLC. The collapse of IndyMac and deterioration in the construction, mortgage and auto lending markets indicate that losses at U.S. regional banks will force dividend cuts and additional capital raising, said analysts at Goldman Sachs Group Inc. and CreditSights Inc. ``After IndyMac, everyone asks, 'Who's next?' but I can list several names that strike me as far more likely to fail than National City,'' said Sterne Agee & Leach Inc. analyst Sean Ryan in an e-mail. National City has ``tons of capital and a real deposit base.'' More Losses Seen Goldman put Zions, Utah's biggest bank, on its ``conviction sell'' list. Lehman Brothers Holdings Inc. predicted $26 billion in cumulative losses for Seattle-based Washington Mutual, and M&T Bank Corp., based in Buffalo, New York, posted a 25 percent decline in second-quarter profit. Banks may report record unrealized securities losses of $35 billion in the second quarter, up 64 percent from the previous three months, the Goldman analysts said in a report today. Zions, SunTrust Banks Inc., Regions, Comerica Inc. and Bank of America Corp. are among companies that Goldman and CreditSights said may cut their dividends to help restore depleted capital. The Goldman analysts estimated banks will require at least $60 billion in addition to the $125 billion they've already raised to bolster capital. IndyMac was seized after a run by depositors left the California mortgage lender short on cash last week. The government stepped in to help beleaguered home lenders Fannie Mae and Freddie Mac yesterday when Treasury Secretary Henry Paulson asked Congress for authority to buy unlimited stakes and lend to the companies to halt a collapse in confidence. The decision to protect Fannie Mae and Freddie Mac was needed to ``stem the growing risk of credit contraction in the U.S.,'' the Goldman analysts said.
July 14, 200816 yr So what happens to a bank's credit card accounts if that bank goes belly-up? "In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck
July 14, 200816 yr cinci dad - you are right. Even though FDIC insures the balances up to $100,000 - you may not have access to that for years - depending on the liqudiation/receivorship of the institution.
July 15, 200816 yr How sound is National City? Shares plunge, but officials calm public Tuesday, July 15, 2008 3:12 AM By Steve Wartenberg THE COLUMBUS DISPATCH Concerns about Maes and Macs and vulnerable banks fueled a wild ride for National City Corp. stock yesterday. Shares of the Cleveland-based bank dropped 33 percent to $2.99 at a little after noon, prompting a statement from bank officials that a run was not in progress by bank customers. With National City stock going down rapidly, the company issued a statement yesterday to reassure stockholders and investors. "National City is experiencing no unusual depositor or creditor activity," it read. "As of the close of Friday's business, the bank maintained more than $12 billion of excess short-term liquidity. Further, as a result of our recent $7 billion capital raise, National City maintains one of the highest Tier I regulatory capital rates among large banks." More at dispatch.com http://dispatch.com/live/content/local_news/stories/2008/07/15/bank_stocks.ART_ART_07-15-08_A1_V8AON0R.html?sid=101
July 15, 200816 yr My cousin just closed her entire NCB account last month (it was in the mid 6 figures). I really can't blame her.
July 15, 200816 yr cinci dad - you are right. Even though FDIC insures the balances up to $100,000 - you may not have access to that for years - depending on the liqudiation/receivorship of the institution. Thats incorrect. That would be the case if you had more than $100k AND the bank is forced to liquidate. The FDIC would have to sell the banks assets to cover depositors accounts. In this case, you don't know how long it will be before you see your money. I posted the FDIC link. Lets read that before posting incorrect information.
July 15, 200816 yr Here is a link to a good article that explains, in simpler terms, how that FDIC handles deposits over $100K. It also includes links to FDIC sites to back up their claims. http://www.wisebread.com/so-your-bank-failed-now-what
September 16, 200816 yr National City stockholders OK capitalization deal http://cincinnati.bizjournals.com/cincinnati/stories/2008/09/15/daily11.html National City Corp. shareholders, in a Monday meeting, approved several proposals related to a $7 billion deal to shore up its capital position. The shareholders OK’d an increase of the bank’s common shares to 5 million from 1.4 million, and the conversion of Contingent Convertible Perpetual Non-Cumulative Preferred Stock, Series G, into common stock, according to a news release. National City’s board in April approved a $7 billion capitalization plan, in which Corsair Capital LLC, a New York private equity firm, will take a 9.9 percent ownership share in the Cleveland-based bank. The firm will contribute $985 million in equity, and also receive a seat on National City’s board. The remaining $6 billion will be contributed by shareholders, including several large institutional investors, as part of the common stock issue. The bank also said the appointment of Thomas Richlovsky, senior vice president and principal accounting officer, as interim chief financial officer, is effective Sept. 30. CFO Jeffrey Kelly, who has been with National City for 29 years, will retire on that date. National City (NYSE: NCC) is the Tri-State’s third-largest bank, with local deposits of about $2.7 billion, according to June 2007 figures from the Federal Deposit Insurance Corp.
September 29, 200816 yr National City's line in the sand The Cleveland bank may have the resources to withstand the onslaught that brought down WaMu and Wachovia. By Colin Barr, CNNMoney, September 29, 2008 NEW YORK (Fortune) -- National City insists it isn't about to follow in the footsteps of Wachovia and Washington Mutual. But the events of the past week suggest the bank's depositors are the ones who will make that decision. National City (NCC, Fortune 500) shares plunged as much as 67% Monday, falling as low as $1.25 each, as investors bet the Cleveland-based lender will be the next financial firm to fail. The selloff came just hours after Wachovia (WB, Fortune 500) sold its banking assets to Citi (C, Fortune 500) in a deal backstopped by the Federal Deposit Insurance Corp., and less than a week after Washington Mutual (WM, Fortune 500) failed and had some of its assets sold to JPMorgan Chase (JPM, Fortune 500). Those institutions were the biggest players in the market for funky adjustable rate mortgages. National City, to be sure, has had its share of problems, too. But the bank stresses that there is no reason for investors or depositors to fear for its safety. It has much less exposure to aggressive mortgages and rapidly deflating housing markets in California and Florida, for instance, than WaMu and Wachovia. "We believe recent performance of our stock reflects the extreme volatility in the financial services market," spokeswoman Kelly Wagner Amen says. But the demise of WaMu and Wachovia shows that in the current panic, a bank's executives aren't completely in control of their fates. At WaMu, depositors withdrew billions of dollars after Lehman Brothers' collapse two weeks ago sent the financial markets into a panic, forcing the Office of Thrift Supervision to seize the thrift and put it into FDIC receivership. "The main risk at any depository institution is a flight of deposits," Sanford C. Bernstein analyst Kevin St. Pierre wrote Friday. So far, there's no sign National City has had any problems keeping its deposits. St. Pierre wrote Friday that through the end of the second quarter in June, there was "no evidence of flight at NCC, with the company having already made plenty of negative headlines." St. Pierre was referring to the company's April barrage of bad news. National City was reportedly seeking a buyer, but ended up selling $7 billion worth of common and preferred stock to a group led by New York's Corsair Capital. National City also took a $1.4 billion loan loss provision and slashed its quarterly dividend to a penny from 21 cents. But from April's bad headlines come September's strength, Wagner Amen says. She says National City's tier one capital ratio - a measure of the cushion against future losses that's watched by regulators - stands at 11.1%, a level Wagner Amen describes as the highest among large banks. She says Wachovia would have had to raise $19 billion in new capital to match National City's capitalization. Wagner Amen adds that National City's capital, funding and liquidity "remain ample," and that the bank is operating "from a position of strength." She says National City has a large core deposit base of 4 million household customers, and that base gives the bank the strength to say that it has "no plan, intention or need to raise new capital" or otherwise take unusual action. One factor that weighs in National City's favor is the modest rate it's currently paying on 12-month certificates of deposits. The bank is offering 3% for one-year CDs - compared with a recent 4.1% at Wachovia and 4.9% at WaMu. The higher rates at Wachovia and WaMu suggested the firms were in desperate need of funding, and were willing to pay above-market rates to lure in deposits. High short-term CD rates are apt to bring in business from the deposit brokers who take large sums for affluent clients and invest them at various institutions. Those funds can help a bank get access to funding when times are good, but are apt to flee at the first sign of trouble. "Large depositors have sought higher yields at companies like WaMu and Wachovia, which needed the liquidity but had trouble attracting it without paying up," says bank analyst Gary Townsend, who runs Hill-Townsend Capital in Chevy Chase, Md. "The FDIC insurance limit is obviously far short of levels that would inhibit large deposits from fleeing elsewhere when the risk to capital rises above a low threshold." The September bloodbath - six financial firms have failed or been taken over by the government in the U.S. alone - suggests that many of the moves being taken by policymakers are having little, if any, effect in slowing the collapse of the credit bubble that took shape in the late 1990s and the earlier part of this decade. Townsend, for one, says the decision to prohibit short-selling in financial shares left portfolio managers with two options: go long, or get into cash. Given the ferocious unwind in the credit markets and the poor track record over the past year of those who made big bets on a recovery in the financial sector, it's no surprise that managers everywhere have chosen cash. "The regulators have been too clever by half, or maybe more," says Townsend. Without the option of shorting stocks, he adds, "What are you supposed to do to manage risk?"
September 29, 200816 yr this is of course why i think we have to find some way to pass a bailout package in some form. It's a double edged sword to be sure. but not passing the bailout hurts "main street" just as much if not more than "wall street". For as much as one can gather Nat City is on solid footing. They already paid the piper, sold a large portion of their company to private equity firms to handle their mortgage mess. Now their stock is plumeting for no real reason other than peoples fear. If Nat City, and the banks like it across the US goes under... who really loses? Is it the CEO's who should be in good shape anyway? No it's the THOUSANDS of reular every day working folks who hit the brunt now. The bailout package doesn't solve the root of the problem and that needs to be addressed. But not passing a bailout package is going to put tens of thousands of people out of work in a real quick timeframe if we don't do something about it.
September 29, 200816 yr Wachovia demise belts stock of National City By ARIELLE KASS 1:33 pm, September 29, 2008 The stock of National City Corp. was down by more than 50% in late afternoon trading as yet another major troubled bank met its demise in a forced sale to a larger rival. More at: http://www.crainscleveland.com/article/20080929/FREE/809299973/1022
September 29, 200816 yr Unless consumer's pull their money from the bank, I would be buying the crap out of the stock...at least until it hits $5.
September 29, 200816 yr Unless consumer's pull their money from the bank, I would be buying the crap out of the stock...at least until it hits $5. Sure, why not. I don't think NCC is going anywhere anytime soon. It's stock pretty much reflects the stock market...and that is dropping like a rock and at bargain prices. NCC should recover as the stock market does. Now, hopefully my post isn't quoted to a newspaper clipping as I told you so by MTS in the near future...
September 29, 200816 yr I say let a few regionals fall and let wachovia fall. The market will "right size" itself.
September 29, 200816 yr SELL NOW! JUST BOUGHT!!!! If I owned National City stock, I definitely would not be selling it at that low a price.
September 29, 200816 yr I still don't understand why people would "make a run" on NCB. Your money is insured up to $100,000 by FDIC, what sense does it make to take it out and keep it under your mattress where it won't make any money.
September 29, 200816 yr Sh*t, it's almost a penny stock (almost). What's the point now? I'm holding onto it.
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